2006 Louisiana Laws - RS 30:148.9 — Natural gas; liquid hydrocarbons; lease for underground storage

§148.9.  Natural gas; liquid hydrocarbons; lease for underground storage

A.  No lease for the underground storage of natural gas shall be made pursuant hereto unless, prior to the application for such lease, the commissioner of conservation of the state of Louisiana has issued an order after public hearing pursuant to the provisions of this Title, finding that the underground storage reservoir for which the lease application is made is suitable and practicable for the underground storage of natural gas and that its use for such purpose is in the public interest, and has determined, in the case of an underground reservoir which is not fully depleted, the amount of the remaining commercially recoverable natural gas and condensate in said reservoir.  If the commissioner of conservation shall find that the underground reservoir sought to be leased for the storage of natural gas is not fully depleted, any lease granted pursuant to the provisions of this Subpart shall be granted on condition that the lessee hold or acquire a lease or an agreement with the lessee under a lease upon such lands granted pursuant to the provisions of this Title until it is determined by the commissioner of conservation that such underground reservoir has been fully depleted of its original reservoir content of commercially recoverable natural gas and condensate.  In the event the commissioner of conservation finds that such proposed underground storage reservoir has been depleted of its original reservoir content of commercially recoverable natural gas and condensate, any lease granted pursuant to this Subpart shall contain no such conditions.

B.  No lease for the underground storage of liquid hydrocarbons shall be made pursuant hereto unless, prior to the application for such lease, the commissioner of conservation of the state of Louisiana has issued an order after public hearing pursuant to the provisions of this Title, finding:

(1)  That the area sought to be leased for the injection, storage, and withdrawal of liquid hydrocarbons in salt dome caverns is suitable and practicable for such use; provided that no area which is subject to an oil, gas, or mineral lease and which is sought to be leased for use as storage for liquid hydrocarbons in underlying salt dome caverns, shall be subject to such use unless the owner of such oil, gas, or mineral lease has consented to such use in writing;

(2)  That the use of salt dome caverns for the storage of liquid hydrocarbons will not contaminate formations containing fresh water, oil, gas, or other commercial mineral deposits; and

(3)  That the proposed storage will not endanger lives or property and is environmentally compatible with existing uses of the area sought to be leased for such storage.

Acts 1995, No. 88, §1, eff. June 12, 1995.